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Zip Code 59808: Rising Home Values and Declining Ownership in Missoula, Montana
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
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Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 59808, located in Missoula, Montana, has experienced significant changes in its housing market over the past decade. This area has seen a general trend of increasing average home prices and fluctuating homeownership rates, coupled with rising average rent prices.
The homeownership rate in zip code 59808 has shown some variability over the years. In 2013, the homeownership rate stood at 69%. It then experienced a slight decline, reaching 66% in 2019, before recovering to 69% in 2020. However, by 2022, the rate had decreased to 63%. This fluctuation in homeownership rates coincided with a substantial increase in average home prices. In 2013, the average home price was $241,716, which steadily rose to $327,390 in 2019, and then dramatically increased to $541,911 by 2022. This represents a remarkable 124% increase in average home prices over a nine-year period.
The relationship between federal interest rates and homeownership rates in this zip code shows some correlation. For instance, when interest rates were relatively low between 2013 and 2016 (ranging from 0.11% to 0.4%), homeownership rates remained fairly stable, hovering around 68-70%. As interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, we observed a decline in homeownership rates to 63%. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
Renter percentages in zip code 59808 have shown an inverse relationship to homeownership rates, as expected. The percentage of renters increased from 30% in 2013 to 37% in 2022. During this period, average rent prices also saw an upward trend. In 2013, the average rent was $1,044, which increased to $1,097 by 2022, representing a 5% increase. It's worth noting that the population in this zip code grew from 17,525 in 2013 to 22,084 in 2022, a 26% increase. This population growth likely contributed to the increased demand for rental properties and the subsequent rise in average rent prices.
Moving to more recent data, in 2023, the average home price in zip code 59808 slightly increased to $544,600, and in 2024, it further rose to $564,496. This represents a 3.7% increase from 2023 to 2024. Interestingly, federal interest rates also saw a significant increase during this period, rising from 5.02% in 2023 to 5.33% in 2024. Despite these higher interest rates, average home prices continued to climb, suggesting strong demand in the local housing market.
Looking ahead, based on historical trends and current market conditions, we can forecast potential 5-year trends for average home and rent prices in zip code 59808. For average home prices, if the current growth rate continues, we might see prices reaching around $650,000 to $700,000 by 2029. However, this growth could be moderated by factors such as interest rates and economic conditions. For average rent prices, assuming a continuation of the modest growth seen in recent years, we might expect them to reach approximately $1,200 to $1,300 by 2029.
In summary, zip code 59808 has experienced significant growth in both population and housing prices over the past decade. The area has seen a general trend towards slightly lower homeownership rates and higher renter percentages, likely influenced by rising home prices and fluctuating interest rates. Despite these changes, both the ownership and rental markets have shown resilience and continued growth, reflecting the dynamic nature of this Missoula neighborhood.
